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In the Case in Point on page 642, the cost of cyclical unemployment was estimated for 2002 by assuming that the unemployment rate associated with full employment was 5 percent. Suppose changes in the age structure of the workforce meant that full employment in 2002 was actually associated with an unemployment rate of 4.5 percent rather than the 5 percent figure used earlier. Recalculate the output costs of the recession. Explain why they are higher.
Can you make a prediction regarding the net effect of this increase in r on the rate of saving? Why, or why not?
Assume that the going wage in agriculture is normalized at 1. The wage in the formal urban sector is 3. The wage in the informal sector is 0.5. Additionally, 20% of working adults who live in the city are employed in the formal sector. Also, assum..
Track consumption and investment around 2000 and 2001. From Table 1.1.1, which variable had the bigger percentage change around this time? Compare non-residential fixed investment with overall investment. Which variable had the bigger percentage c..
Perform a Durbin-Wu-Hausman test to evaluate whether ASVABC appears to be subject to measurement error.
A company's first year's operations can be summarized as follows: Revenues: $110,000 Expenses (except CCA): $65,000 Its capital asset purchases in the first year totalled $100,000.
Suppose that in this economy the fraction of total output in a sector that is paid to labor is the same as the fraction paid to labor in the United States. When output was $300 billion (in constant dollars), what would total compensation have been..
Compare the path of GDP in this question with the path in problem 1 after policy actions have been taken.
What are the highest and lowest payments from the writer that the beekeeper-farmer team will accept for the sixth day Assuming that the farmer can dispose of the $7 from the writer as she wishes, what range of payments will the beekeeper accept
The attendant quotes you $100. Suppose you rate the opportunity cost of getting back in your car and sampling another price at $5. Assuming you're risk-neutral, what should you do A. Sample another price. B. Stay at this motel.
the company's value in the hands of current management is somewhere between $10 million and $110 million, uniformly distributed over this range. The current management will sell the company to you if, and only if, your bid exceeds the true value k..
Assets Liabilities Total reserves $12 billion Transactions accounts $ 50 billion Loans $27 billion Securities $11 billion Total $50 billion Total $50 billion 22.1. If the required reserve ratio is 0.20, what are the banks' required reserves
Does empirical evidence suggest that they are of sufficient size to outweigh price effects and therefore improve the trade balance?
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